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Thread: The NOT SO STIMULATING Obama stimulus bill

  1. #1
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    Default The NOT SO STIMULATING Obama stimulus bill

    I'm posting this information out of the Glenn Beck newsletter. This latest "stimulus" bill proposed by the democrats and Obama will do NOTHING for the economy this year, much of it not coming into full effect until 2011. It's not a stimulus package as much as it is a bunch of political, government growth. And yet, they find it justifiable to print over 800 billion dollars of debt that we will have to pay for. Please, I hope you can read the information here.

    Obama Stimulus Package Breakdown

    January 26, 2009 - 11:16 ET

    What is the money being spent on-general breakdown between infrastructure, tax cuts, etc…?

    Some highlights of the package, by the numbers:

    • $825 billion total (as of 1/15/09)
    • $550 billion in new spending, described as thoughtful and carefully targeted priority investments with unprecedented accountability measures built in.
    • $275 billion in tax relief ($1,000 tax cut for families, $500 tax cut for individuals through SS payroll deductions)
    • $ 90 billion for infrastructure
    • $ 87 billion Medicaid aid to states
    • $ 79 billion school districts/public colleges to prevent cutbacks
    • $ 54 billion to encourage energy production from renewable sources
    • $ 41 billion for additional school funding ($14 billion for school modernizations and repairs, $13 billion for Title I, $13 billion for IDEA special education funding, $1 billion for education technology)
    • $ 24 billion for "health information technology to prevent medical mistakes, provide better care to patients and introduce cost-saving efficiencies" and "to provide for preventative care and to evaluate the most effective healthcare treatments."
    • $ 16 billion for science/technology ($10 billion for science facilities, research, and instrumentation; $6 billion to expand broadband to rural areas)
    • $ 15 billion to increase Pell grants by $500
    • $ 6 billion for the ambiguous "higher education modernization."

    [Source: Committee on Appropriations: January 15, 2009]

    Here is a further breakdown of the package:

    NOTE: The following are highlights of the package; for the full 13-page summary from the Appropriations Committee, click here:

    (as of 1/15/09)

    $32 billion: Funding for "smart electricity grid" to reduce waste
    $16 billion: Renewable energy tax cuts and a tax credit for research and development on energy-related work, and a multiyear extension of renewable energy production tax credit
    $6 billion: Funding to weatherize modest-income homes

    Science and Technology
    $10 billion: Science facilities
    $6 billion: High-speed Internet access for rural and underserved areas

    $30 billion: Transportation projects
    $31 billion: Construction and repair of federal buildings and other public infrastructure
    $19 billion: Water projects
    $10 billion: Rail and mass transit projects

    $41 billion: Grants to local school districts
    $79 billion: State fiscal relief to prevent cuts in state aid
    $21 billion: School modernization ($15.6 billion to increase the Pell grant by $500; $6 billion for higher education modernization)

    Health Care
    $39 billion: Subsidies to health insurance for unemployed; providing coverage through Medicaid
    $87 billion: Help to states with Medicaid
    $20 billion: Modernization of health-information technology systems
    $4.1 billion: Preventative care

    Jobless Benefits
    $43 billion for increased unemployment benefits and job training.
    $39 billion to support those who lose their jobs by helping them to pay the cost of keeping their employer provided healthcare under COBRA and providing short-term options to be covered by Medicaid.
    $20 billion to increase the food stamp benefit by over 13% in order to help defray rising food costs.



    *$500 per worker, $1,000 per couple tax cut for two years, costing about $140 billion.
    *Greater access to the $1,000-per-child tax credit for the working poor.
    *Expansion of the earned-income tax credit to include families with three children
    *A $2,500 college tuition tax credit.
    *Repeal of a requirement that a $7,500 first-time homebuyer tax credit be paid back over time.


    *An infusion of cash into money-losing companies by allowing them to claim tax credits on past profits dating back five years instead of two.
    *Bonus depreciation for businesses investing in new plants and equipment
    *Doubling of the amount small businesses can write off for capital investments and new equipment purchases.
    *Allowing businesses to claim a tax credit for hiring disconnected youth and veterans

    [Sources: Associated Press: Highlights of Senate economic stimulus plan; January 23, 2009; WSJ: Stimulus Package Unveiled; January 16, 2009; Committee on Appropriations: January 15, 2009]

    When is the money being is going to be spent, and on what?

    The government wouldn't be able to spend at least one-fourth of a proposed $825 billion economic stimulus plan until after 2010, according to a preliminary report by the Congressional Business Office that suggests it may take longer than expected to boost the economy. The government would spend about $26 billion of the money this year and $110 billion more next year, the report said. About $103 billion would be spent in 2011, while $53 billion would be spent in 2012 and $63 billion between 2013 and 2019.

    • Less than $5 billion of the $30 billion set aside for highway spending would be spent within the next two years, the CBO said.

    • Only $26 billion out of $274 billion in infrastructure spending would be delivered into the economy by the Sept. 30 end of the budget year, just 7 percent.

    • Just one in seven dollars of a huge $18.5 billion investment in energy efficiency and renewable energy programs would be spent within a year and a half.

    • About $907 million of a $6 billion plan to expand broadband access in rural and other underserved areas would be spent by 2011, CBO said.

    • Just one-fourth of clean drinking water projects can be completed by October of next year.

    • $275 billion worth of tax cuts to 95 percent of filers and a huge infusion of help for state governments is to be distributed into the economy more quickly.

    [Note: The CBO's analysis applied only to 40 percent of the overall stimulus bill, and doesn't cover tax cuts or efforts; a CBO report outlining all of its costs is expected in the next week or so.]

    • The Obama administration said $3 of every $4 in the package should be spent within 18 months to have maximum impact on jobs and taxpayers; if House or Senate versions of the bill do not spend the money as quickly, the White House will work with lawmakers to achieve the goal of spending 75% of the overall package over the next year and a half.

    [Source: AP: Three-quarters of stimulus to go in 18 months; January 22, 2009; Bloomberg News: Much of Stimulus Wont Be Spent Before 2011, CBO Says; January 20, 2009; link]

    Who will be spending the money? Will the states be receiving any money to spend, community organizations? Churches?

    The economic stimulus plan now moving through Congress would shower billions of federal dollars on state and local governments desperate for cash:

    • The House stimulus bill includes an extra $87 billion in federal aid to state Medicaid programs.

    • It allots some $120 billion to boost state and city education programs.

    • There's $4 billion for state and local anticrime initiatives in the legislation, not to mention $30-plus billion for highways and other infrastructure projects.

    • $6.9 billion to help state and local governments make investments that make them more energy efficient and reduce carbon emissions.

    • $87 billion to states, increasing through the end of FY 2010 the share of Medicaid costs the Federal government reimburses all states by 4.8 percent, with extra relief tied to rates of unemployment.

    • $120 billion to states and school districts to stabilize budgets and prevent tax increases and deep cuts to critical education programs.

    Overall, about one-quarter of the entire $825 billion recovery package would be devoted to activities crucial to governors, mayors, and local school boards - making them among the plans biggest beneficiaries.

    [Sources: Committee on Appropriations: January 15, 2009; Reuters: Roads, energy, states win in US stimulus plan;15 January 2009; Christian Science Monitor: States to win big in stimulus sweepstakes; House bill allots almost one-quarter of the $825 billion recovery package to states, localities. How will that boost the economy?; January 25, 2009; Link]

  2. #2
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    Stimulus 101: What's in the Bills
    by David Goldman
    Tuesday, January 27, 2009provided

    The plan by Obama and congressional Democrats to revive the economy is taking shape. Here's what we know so far.

    You've probably noticed: The Obama administration and Congress are talking about spending an unprecedented sum of money to try to revive the economy.

    President Obama and House Democrats laid down the marker with an $825 billion package of spending and tax cuts. The Senate version will be taken up by two committees on Tuesday.

    More from

    • Talkback to CNNMoney: How Is the Economy Affecting You?

    • Unemployment Sweeps Nation

    • Bank Bailout Could Cost $4 Trillion

    Dozens of proposals. Hundreds of pages of legislation. Billions of dollars.

    What are some of the headline proposals, and what is the debate all about? The legislation is a work in progress, but here is an overview.


    The case for: By investing in renewable energy, health care, education and modern construction projects, the Obama administration expects to create between 3 million and 4 million jobs and address key sustainability issues.

    The case against: Opponents argue the spending will lead to a rapidly increasing and unsustainable deficit. They also say that a majority of infrastructure projects will take too long to implement.

    Construction projects: $90 billion. Fund the rebuilding of crumbling roads and bridges, build clean water and flood control mechanisms and provide funding for mass transit systems.

    Education: $142 billion. Rebuild thousands of schools by modernizing classrooms, labs and libraries. The plan would also increase funding for Pell Grants.

    Renewable energy: $54 billion. Double production of alternative energy in the next three years. Weatherize low-income homes, modernize 75% of federal buildings and update the nation's electrical grid with a new, cost-efficient "smart" grid.

    Health care records: $20 billion. Modernize the health care system by computerizing all of the nations' medical records in the next five years.

    Science, research and technology: $16 billion. Invest in science facilities, research and instrumentation to create new industries, new jobs and medical breakthroughs. Expand broadband Internet access in rural and underserved areas.

    State Relief

    The case for: As states face budget shortfalls, Obama's plan seeks to help states pay for Medicaid and unemployment benefits. State fiscal relief will be allocated to prevent increases in state and local taxes.


    The case against: Opponents say the bill should focus on job creation that will make an immediate impact the economy. Republicans have specifically criticized a provision that would expand a government matching program for states that provide abortion and contraceptive funding through Medicaid. A Democratic official told CNN the House Democratic leaders are planning to remove the provision.

    Medicaid: $87 billion. Increase Federal Medicaid Assistance Percentage so states do not have to cut eligibility for Medicaid due to budget shortfalls.

    Law enforcement: $4 billion for states and municipality funding for law enforcement.

    Safety Net

    The case for: Obama proposed temporary programs to protect those most vulnerable to the effects of the recession.

    The case against: As with state budget relief, opponents say the bill is too big and should simply aim to create new jobs. Some lawmakers have said some of the "safety net" spending provisions are wasteful, and many have called the bill unfocused.

    Unemployment benefits: $43 billion. Extend through December 2009 emergency unemployment insurance assistance to states. Increase weekly unemployment benefits by $25, and provide incentives for states to expand unemployment coverage.

    Cobra: $39 billion. Tax credit for recently laid-off employees to help pay for discounted health care. Obama estimates the plan will help 8.5 million people who recently lost their jobs.

    Feeding the hungry: $20 billion. Increase food stamp benefits by 13%, and provide support for food banks, school lunch programs and WIC.

    Tax Cuts for Individuals

    The case for: The president proposed the so-called "Make Work Pay Credit" as part of an effort to spend at least 75% of the package in the first 18 months after its passage. Obama hopes that fast-spending provisions like tax cuts will quickly help low- and middle-income workers in need of spending money.

    More from Yahoo! Finance:

    • What to Do if Uncle Sam Takes Over Your Bank

    • The Case for Credit Cards in a Cash-First Era

    • How the Stimulus Will Affect You
    Visit the Banking & Budgeting Center

    The case against: Opponents say the size tax cuts do not go far enough and on the whole don't make up a big enough portion of the entire package. Furthermore, they oppose giving tax breaks to people who do not pay taxes.

    Middle-class tax cut: $145 billion. Tax cut amounting to $500 a year for individuals and $1,000 for couples. The full credit would be limited to those making $75,000 or less ($150,000 or less for workers filing joint returns).

    Low-income tax cut: $5 billion. Expand the Earned Income Tax Credit, which is a refundable credit for low-income workers. Furthermore, the Make Work Pay Credit would be refundable, meaning that even tax filers without any tax liability -- typically very low-income workers -- would receive one.

    Child tax credit: $18 billion. Temporary increase in the amount of the child tax credit that would be refundable.

    Tax Cuts for Businesses

    The case for: In an attempt to get money out quickly to low- and middle-income workers, the president has pushed for tax cuts for certain individuals.

    The case against: Opponents say too small of a percentage of the total package -- 2.7% -- goes to small businesses. They also say that much of the proposed tax relief essentially amounts to spending, due to the provisions Democrats placed on the tax credits.

    Small business write-offs: Obama would increase the amount of expenses small businesses can write off to $250,000 in 2009 and 2010 from the current $125,000 level.

    Tax cuts for companies suffering losses: $17 billion over 10 years. Obama would temporarily broaden the "net-operating loss carryback" to five years, up from two years currently. The provision would let companies apply their 2008 and 2009 losses to past and future tax bills so they can get money back on taxes they've already paid or would otherwise have to pay.
    Copyrighted, CNNMoney. All Rights Reserved.

  3. #3
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    Umm, where is the bailout for the porn industry?

  4. #4
    Senior Member Array Lateralus's Avatar
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    This spending won't stimulate the economy, anyway. So it doesn't really matter when it happens.
    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  5. #5
    Seriously Delirious Array Udog's Avatar
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    I started to research this a bit, trying to hear both sides, until I remembered that I still think this type of action in general is the wrong thing to do.

    I'll concern myself with the details when this thing passes and I can start figuring out how we are screwing over future generations.

  6. #6
    He pronks, too! Array Magic Poriferan's Avatar
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    My biggest problem with this stimulus package is that none of this money exists.
    Go to sleep, iguana.

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  7. #7
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    I see mostly the tax cuts and the jobless benefits as being the most positive part because they both counterweight each other in terms of incentives (with tax cuts a subject has an incentive to work more, ceteris paribus, while with jobless benefits one has incentive to work less), I can't comment on the other part since I lack specific knowledge of the situation.

    Yet, of course, any inch of stimulus will be lost if the created debt will cause a strong rise in inflation.
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  8. #8
    Senior Member Array Lateralus's Avatar
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    This won't stimulate the economy because the average American is so deep in debt, they'll use this money to pay off debt. Paying off debt is a good thing, but several hundred here and there isn't going to have a substantial effect. Someone might counter this argument by saying we need a bigger stimulus, but then the question becomes, where do you get that money? If you're just printing it, you're putting the dollar in greater peril.
    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  9. #9
    Senior Member Array IrishStallion819's Avatar
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    Yeah, I heard with the current amount in debt; Every american is like 500,000 dollars in the hole lolz
    "People often Find out the truth, when its too late!!!"

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  10. #10
    Senior Member Array Misty_Mountain_Rose's Avatar
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    Quote Originally Posted by Didums View Post
    Umm, where is the bailout for the porn industry?

    Quote Originally Posted by Magic Poriferan View Post
    My biggest problem with this stimulus package is that none of this money exists.
    Embrace the possibilities.

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